Argentina fan token(ARG) tanks despite the country’s win at the World Cup 2022
Argentina’s triumph at the just concluded World Cup 2022 did not guarantee its Argentine Football Association Fan Token would keep rising. In a mere 24 hours after the match, ARG lost over 53% of its value. At the time of writing, it is trading at $3.39 based on data from Coingecko.
Interest in fan tokens soared 117%
Over the past year, the popularity of fan tokens has increased. According to a recent data presentation by TradingPlatforms.com, the interest in digital assets rose significantly during the Qatar World Cup by 117%.
The data presentation showed that the search interest in the term “digital assets” increased significantly, from 46 to 100, during the period between November 19 to December 10.
Sports expert Edith Reads noted that the rise in the search interest in fan tokens equates to the increasing number of football fans passionate about their country or team. These individuals use these digital assets to show their support.
A plunge that was bound to happen?
Fan tokens usually perform according to the overall market performance of the cryptocurrency. However, in certain cases, their performance can be affected by heightened fan interest. For instance, the recent win for Argentina over France has yet to create a positive sentiment for ARG.
On December 18, Argentina defeated France in the FIFA World Cup final, which was held in Qatar. That was the country’s first title since 1986. It also marked the last time Lionel Messi participated in a World Cup final.
After Argentina’s victory over the US, the ARG Fan Token was expected to rise. However, it has fallen over the past few days. Since the world cup has ended, this could explain this bearish sentiment.
Since the beginning of the World Cup, the Football Fan Token has experienced high trading volumes. However, now that the event has ended, investors are aware that they might have yet to take advantage of the price movement driven by the activities surrounding the World Cup games. Hence, there was high selling pressure in anticipation that the ARG excitement would die down in the coming weeks.
The broader crypto market remains bearish
Before the World Cup final started, the ARG token price was around $6. It has since lost half its value and trades at around $2.82. During the last 24 hours, the token’s value has been trading around the $6.34 and $2.74 limits. In the past 24 hours, the ARG trading volume has stood at $5.85 million.
In hindsight, the broader crypto market has remained bearish throughout the world cup compared to the previous highs. Notably, there was little price movement in the market over the period ARG plummeted. Over the past 24 hours, the market cap stands at $840 billion, with a slight decline noted.
The path of action of ARG Fan Token will depend on how the broader market performs. However, with the world cup closing, the volatility might drop significantly.